Mergers & Acquisitions Insurance
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Partners& understands the strategic importance of M&A for trade buyers, private equity, venture capital providers and other investors. We are also acutely aware of the need to identify and manage the risks associated with investments, working closely with our industry specialists, ecosystem partners and product experts to address any areas of concern. Our dedicated M&A advisory team has collectively acted on over 150 buyouts, disposals, listings, and mergers during recent years and is well placed to support the wider corporate finance and investment community.
We are on hand to help you with sale preparation support, ecosystem partners and to assist with industry practice specialisms.
To help make sure you are fully prepared pre- deal we will assist you with preparing new directors’ & officers’ placement, insurance due diligence, risk management and claims analysis (trend/complex losses).
Once completion has taken place the next steps are sorting warranty and indemnity placement, tax indemnity cover, reliance letters, day 1 placement, key person placement.
Finally we are on hand post-deal to guide you with a 100 day risk & insurance plan, credit insurance review and reviewing your employee benefits and wellbeing package.
Why do you need M&A insurance?
Mergers & acquisitions advice or insurance advice to a business owner would be different yet essentially lead to the same end. We are here to help guide you every step of they way.
From all sides any business owner should prepare their business for sale. A health check on the business if you like. This will include the basics such as ensuring that the business is financially performing to maximise value, internal management structures are in play working to grow the business, through to client contracts, leases etc. are all up to date. This provides the best possible viewpoint to any potential acquirer and therefore protects the enterprise value.
The same can be said from an insurance perspective. Ensuring that the business has all necessary policies, warranties and indemnities, D&O (director and officers) where required, keyman or shareholder protection in place, could protect the value of a transaction. Thus, ensuring that no unnecessary risks could be viewed by an acquirer as an opportunity to price chip the enterprise value.
M&A 360 approach
Insurance due diligence
Partners& specialises in providing pre-acquisition and pre-disposal insurance due diligence services to private equity, trade and alternative investment transactions. We report on the suitability of insurance and risk management programme of a target asset to provide robust advice on behalf of vendor or buyer.
We focus on the gaps, overlaps or structural issues in coverage or risk management approach that could have a material impact on the investment, whilst outlining possible remedies and their impact on cost.
Risk management/claims analysis
As more brokers commoditise their offering for clients and outsource their claims capability to insurers, Partners& enhanced our advice capability through the acquisition of Kudos Liability Adjusters. Our distinctive claims proposition has allowed us to address difficult claims that require a more forensic approach, especially for those looking to invest in sectors with inherent complex risks. Designing effective claims defensibility strategies for our clients adds a further layer of comfort- whether it be supplementing due diligence or a standalone project.
We can also analyse a target’s claim profile by reviewing significant claims or key trends, enabling us to comment on suitability of liability/indemnity limits.
Warranty and indemnity
W&I policies cater for unforeseen liabilities arising from a breach of the warranties under a sale and purchase agreement. This has become an increasingly valuable deal enabling tool for both buyers and sellers, enhancing bids through lower indemnity caps as well as facilitating clean exits for sellers. We provide insurable options for limits from £250k upwards. We adopt a flexible approach, considering how insurance can best respond to every transaction, based on its own specific parameters and the needs of the parties on the deal.
We also have access to the following products:
– Tax insurance
– Contingent risk insurance
– Litigation insurance
– Title insurance
– M&A environmental insurance
Key person / business protection
The success of many acquisitions relies on the continued performance of management and key individuals and insurance protection is often a funding requirement. Whether it be key person, shareholder protection or relevant life policies, we offer solutions that protect the key individuals and their families in a tax efficient way.
Credit risk consultancy
Credit risk consultancy ensures all aspects of credit insurance are considered during the M&A process including reviewing the impact of a transaction on the target’s debt position and risk profile in the eyes of credit insurers, through to reviewing and trade credit insurance purchased by the target. Improving or clarifying your risk profile to lenders and insurers before, or soon after, completion can prevent significant disruption to supplier and customer relationships.
Directors’ & officers’ placement
M&A transactions generally necessitate a new and enhanced D&O policy, as existing policies will not cover any new or current
People are your greatest asset – that’s why you should to provide an environment that maximises workplace satisfaction, wellbeing and performance. An effective employee benefits programme will do just that.
We understand the people challenges you and your business face. We’ll work with you to design, communicate and implement a reward and wellbeing package that will attract and retain talented people, creating a happy, motivated and successful workforce.
100 day planning
We don’t simply stop after the transaction is complete. We can help you and your management team implement the outcomes of insurance DD from newco D&O to cyber risk reviews and business continuity planning.
Credit insurance and surety bonds
Working with our ecosystem partners, we have the freedom to access the whole market to get you the most appropriate deal. Whether it be sourcing coverage for non-payment protection, managing trade risk, improving your risk profile to lenders, we can help.
Using our insurance due diligence experience, we are able to conduct comprehensive or more targeted risk and insurance
Through our M&A Advisory team and wider Partners& ecosystem, we are in regular contact with advisers and investors who are
happy to assist our clients with their transaction requirements. Our industry speclialisms give us great insight in to the issues and
opportunites within our key sectors, including the investement needs of businesses. Our partrnerships and networks are geared towards supporting investors with useful connections to facilitate introductions and remove any avoidable risks that prevent the realisation of their strategic goals.